wholesale elec an gas prices tumble yet our price goes up

surfsister

In the paper today it says that gas wholesale prices have dropped by a quarter

and elec by a third in the past few months

yet my Powergen bill has rocketed how can this be right?

Ken68

Because the energy providers buy ahead of time.
NOW they are buying ahead of time at a cheaper rate so the retail price in a few months, certainly by spring should be lower.

oldwiring

Ken68 wrote:

Because the energy providers buy ahead of time.
NOW they are buying ahead of time at a cheaper rate so the retail price in a few months, certainly by spring should be lower.

Good and valid point but it is not one that Sun-man can or will understand. One valid point for him is too much; two flshy ones ar more his mark. The SSE Jan 07 rise came in for comment, I belive, from that very paper, that people would not understand how.... In the DT, however, it was reported that the SSE rise was a catching up one, as they had lagged behind their competitors in price hilkes. I'd hazard that they had brought forward favourably whilst others had been caught by buying spot during the shortages.

Ken68

OFGEM are the people to believe. This report dated 2004 ,the start of high prices, shows what the suppliers are up to.........http://news.bbc.co.uk/1/hi/business/3715642.stm

Cardew

It is a fact that many people just do not want to believe, but most utility distribution companies have been operating at a loss over the past year or two.

Thats why many of the smaller companies have got out of the market.

Ofgem have the power to force price cuts if these companies are making excessive profits.

IMO any cuts if/when they come will be token, accompanied by huge publicity!

Ken68

Yet, Cardew there are still plenty of 'agents', like Sainsbury Energy and Virgin and Ebico and Age Concern and Help the Aged, all taking a cut, so you would have thought these would go to the wall first.Yet they seem to thrive.